What price per unit would have been charged to the customer?

Assignment – Job Order Costing
Northwest Company uses a job-order costing system and applies manufacturing overhead cost to jobs
on the basis of the cost of direct materials used in production. At the beginning of the current year, the
following estimates were made for the purpose of computing the pre-determined overhead rate:

Budgeted manufacturing overhead cost was expected to be $620,000
Budgeted direct material cost for the year was expected to be $387,500

The following transactions took place during the year:
1.
2.
3.
4.

Raw material purchases totaled $355,000.
Raw materials requisitioned for use in production (all direct materials) totaled $375,000.
Utility costs incurred in the manufacturing plant were $52,500.
Costs for salaries and wages were incurred as follows:
Direct labour
Indirect labour
Selling and Administrative salaries

$540,000
$225,000
$362,500

5. Maintenance costs incurred in the manufacturing plant were $37,500.
6. Advertising costs for the year totaled $325,000.
7. The company recorded depreciation of $125,000 for the year. 90% of the depreciation relates
to manufacturing equipment.
8. The company paid $230,000 in rent for their facilities. The manufacturing plant used
approximately 80% of the space in the facility.
9. Manufacturing overhead was applied to jobs during the year.
10. The cost of goods manufactured for the year was $1,475,000.
11. Sales for the year totaled $2,500,000. The unadjusted cost of goods sold for these jobs was
$1,500,000.
12. Miscellaneous selling and administrative costs were $70,000 for the year.
13. The balances in the inventory accounts at the beginning of the year were as follows:
Raw materials
Work-in-process
Finished goods

$43,000
$62,000
$85,500

Required:
1. Determine the ending balances in the inventory accounts and in the Manufacturing Overhead
account.
2. Prepare a schedule of cost of goods manufactured.

3. The company has decided to write off the difference between the allocated overhead and the
actual overhead to cost of goods sold. Prepare a cost of goods sold schedule (i.e., show, in
detail, how you have calculated the cost of goods sold).
4. Prepare an income statement for the year.
5. Job 436 was one of many jobs started and completed during the year. The job required $9,000
in direct materials, and 500 hours of labour at a cost of $22 per hour. If the job contained 500
units and the company billed at 75% above the unit product cost on the job cost sheet, What
price per unit would have been charged to the customer?

Homework Market
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Homework Market

HomeworkMarket

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Homework Market

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

HomeworkMarket

Unlimited Revision

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

HomeworkMarket

Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

HomeworkMarket

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

HomeworkMarket

Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

Fill in the order form and provide all details of your assignment.

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

Once your paper is ready, we will email it to you.

Homework Market Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HomeworkMarket HomeworkMrket

Essays

Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HomeworkMarket HomeworkMarket

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HomeworkMarket HomeworkMarket

Editing

Essay Editing

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HomeworkMarket HomeworkMarket

Research Paper

Research Paper

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.